Reducing Cycle Time in the Apparel Retailer-Manufacturer Global Supply Chain Through Interorganizational Linkages

Given increased global competition and consumers’ increasing price sensitivity, apparel retailers such as J. C. Penney have begun to focus on quick response and cycle time reduction as part of their overall business strategy. Extensive use of interorganizational linkages with major suppliers has become a key component in designing more effective, responsive strategies to meet changing corporate objectives. Electronic links with customers, suppliers, business partners, and the firm’s vast network of retail stores are critical to successful relationships. This field study examines cycle time reduction (CTR) opportunities across the retailer-manufacturer supply chain in the U.S. apparel industry. The global supply chain (GSC) extends from customer order placement at the apparel retailer to the apparel manufacturing facility. The primary focus of the project was on the retailer’s purchasing and sales functions with respect to the apparel manufacturer and the retailer’s customer. The project objective was to identify opportunities to reduce cycle time in key business areas through interorganizational linkages between the retailer and the manufacturer in a way that reduced cost and/or improved customer service.